Vitalik Buterin on Feb 9, 2026 rejects USDC yield as non-DeFi; Aave market holds $4.1B USDC
On February 9, 2026, Vitalik Buterin criticized USDC yield strategies on X, arguing they fail to decentralize risk and reflect DeFi drifting from its purpose. He favored ETH-backed or overcollateralized stablecoins that push counterparty risk to markets. According to the protocol's dashboard, Aave's main Ethereum market holds over $4.1B in USDC, underscoring reliance on centralized issuers.